The recent noble prize designation gave Muhammad Yunus the luxury to mediate his works and ideas through mainstream television. He appeared in number of famous television programs including Oprah, John Stewert, The hour, 60 minutes. Now that he got the noble peace prize everyone likes Muhammad Yunus, everyone is speculating and suggesting what he should do and what he shouldnt do and how this world needs more people like him. Thank god to the "noble peace prize." Can you imagine if he didnt get that "noble peace prize" all his theories and hard work would go invain. Oprah would have never called him the first place. hahahaha
I came across his book at my school's library and gave it a try. It was simply amazing. Its called Banker to the poor. In his book Yunus criticized the existing financial industy which includes bank, insurance companies, investment companies. Yunus suggested that every bank in this world should be called Banks for rich people as traditional banks do not cater or lends to poor people who dont have any money or collateral. To prove that banking could be done to the "very poor" segment in the economy in a very much profitable manner Yunus created Grameen bank in 1977. The bank which started on the basis of "micro credit" aiming to help poor people made handsome profit every year since then. Now Yunus's ideologies are being used everywhere in the world as an effective strategy to fight poverty. Here are some of the amazing paragraphs I came across throughout the breathtaking book "Banker to the poor" while finishing it in two days.
-In the traditional economic theory "developement" is veiwed simply in terms of increasing a nation's GNP. When the national economy picks up, the situation of the poor is not necessarily improved which is why there is poverty even in countries like United States. Therefore developement should be redifined and should refer to a positive measurable change in the per capita income of the bottom (poorest) 50% of the population.
-In economic Theory credit is seen merely as a means with which to lubricate the wheels of trade,commerce and inudstry. But in reality credit creates economic power, which quickly translates into social power. When credit institutions and banks make rules that favor a distinct section of the population, that section increases both its economic and its social status. In both rich and poor countries alike, credit institutions and banks have favoured the rich and in so doing have pronounced a death sentence on the poor.
(this paragraph below I thought is the best paragraph in the book and portrays Yunus's superb knowledge and background in economics)
- Competition in the democratic market economy should be encouranged but I (Yunus) oppose an economy grounded solely on greed-based enterprises. Society should create social consciousness-driven enterprises to compete with greed based eneterprises. A market driven by social consciousness is far more effective then a market driven just by greed. Globalization shouldnt be used to create more distance between the poor and the rich but should be used for the betterment of human society. Free trade must be encouraged and must mean freedom for the weakest. Globalization must create harmony partnership between the big and small companies rather than become a vehicle for unhindered takeover by rich companies. The rule of "strongest takes it all" must be replaced by a rule that ensures everybody a place and a piece of the action. Most of all I believe in "Equality of Opportunity" for every individual but not every individual should be equal in terms of economic condition.
What I liked most about the book was how Yunus portrayed what he theorized by actually doing it in action by creating and sustaining Grameen bank. Being an activist myself fighting against poverty I came across many different people with their ideas with what people should do and how economy should run. My general observation is that most of these activist have very very little idea and education about the practicality of how societies and economies actually operates. These activists dream of an Utopian society where everyone will be equal and at the same time these activist dont believe in compensating people for their hardwork and also dont believe in competition being an effective drive for the economy. I suggest those "communist" mentality driven activists should read this book. (at this point I should mention I was one of those communist mentality driven activist with a vision of Utopian society not too long ago... hahahahhaaha )
